Nairobi — President William Ruto on Thursday delivered his State of the Nation Address in Parliament, declaring that Kenya's development will be driven by the country's own revenues and not by foreign aid or debt.
Speaking during his State of the Nation address from Parliament on Thursday, the President said Kenya must break from a history of heavy borrowing that has defined the country's development model for nearly two decades.
"Our country will not be developed by others. Our country will not be developed by aid. Our country will not be developed by debt. Our country will be developed by us, using our own revenues and taxes. The guarantee I give is that no revenues or taxes will be stolen," he said, telling off critics of his administration's fiscal approach,
Kenya's historical reliance on debt
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Kenya's public debt has surpassed Sh11 trillion, with a significant portion accumulated over the last 15 years. Major infrastructure projects -- including the Standard Gauge Railway, Nairobi Expressway, bypasses, and energy installations -- were largely financed through external borrowing.
China has been among Kenya's biggest creditors, accounting for roughly 20 percent of Kenya's external debt, mainly through loans taken for transport and energy infrastructure. For years, Kenya has depended on such loans to fund development, often turning to Beijing for large-scale financing when domestic revenue fell short.
This borrowing model, combined with rising repayment pressures, has sparked sustained public concern and debates over debt sustainability, prompting Ruto to champion a shift towards local revenue mobilisation and fiscal discipline.
The President used his address to defend key pillars of his administration, including the affordable housing programme and the rollout of Universal Health Coverage (UHC), both of which have faced political and legal challenges.
Ruto said the government had overcome early cynicism about the housing programme.
"Three years ago, when we said we would deliver affordable housing, the cynics dismissed it as a fantasy. When they realised we were serious, they called it impossible. And when we broke ground across the country, they suggested the projects would stall.
Today, those doubts have given way to a very different question from Kenyans everywhere: 'How do I get one of those units?"'**
On UHC, the president said the government is already paying medical premiums for vulnerable households under the Social Health Authority.
"When I promised that those unable to pay would be supported by the government under UHC, the cynics scoffed. Today we are paying premiums for 2.3 million vulnerable Kenyans including orphans, widows, the elderly, and those without income, because for them, healthcare is not a privilege. It is a right fully secured."
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The President also defended his administration's handling of the economy, saying global institutions and markets were acknowledging Kenya's improving fiscal outlook.
"...the world's most respected economic assessors, and market sentiment, are affirming what we already know: that our economy is strengthening, our prospects are brightening, and confidence in Kenya is rising."
Ruto dismissed his critics as "high priests of eternal pessimism," accusing them of spreading misinformation about the country's economic direction.
"While anyone may speak their mind -- that is the beauty of our democracy -- no one is entitled to manufacture self-serving falsehoods and traffic them as facts. And facts are exactly what I present today; clear, verifiable, and indisputable."
He urged Kenyans to reject mediocrity and aspire to higher national ambition.
"...we must cast off the prevailing mindset of being content with the average; we must step beyond the comfort of the familiar and the ordinary, and reach -- with courage, clarity, and conviction -- for nothing less than excellence and greatness."
